Accueil > Money and banking

BECO 1750A - Money and banking

Type d'enseignement : Seminar

Semester : Autumn 2017-2018

Number of hours : 36

Language of tuition : English

Pre-requisite

For Sciences Po students : AECO 1110 Macroéconomie, AECO 1105 Principes de Microéconomie. Exchange students are expected to have completed introductory courses in Macroeconomics, Microeconomics, as well as Mathematics/Statistics (covering calculus, constrained optimization, probability and statistics). Students are encouraged to take this course together with ‘Intermediate Macroeconomics'. WARNING : This course requires a solid foundation in basic macro and micro economics, as well as mathematics and statistics. Students have to be proficient in algebra and calculus (taking derivatives, rearranging equations, taking first-order conditions etc) and probability and statistics (expectation, variance, distributions, etc).

Course Description

This is a second-year course on modern monetary economics. We will cover the following topics : 1) Traditional monetary economics : purpose and definitions of money, classical and Keynesian theories of money, efficacy of monetary policy, the relationship between monetary and fiscal policy 2) Towards modern monetary economics : the dynamics of consumption and saving, the tools of monetary policy/models of the interbank market, the term structure of interest rates, the role of expectations and the New Keynesian Phillips curve, empirical evidence on the effects of monetary policy, monetary policy in the NK framework, discretion vs commitment 3) The financial crisis and current macroprudential policy : history of the 2008-10 financial crisis, bank run/coordination failure models (Diamond-Dybvig), securitization, adverse selection and moral hazard in financial markets, the financial accelerator and other amplification mechanisms, unconventional monetary policy

Teachers

  • LENOIR, Julie R. (Etudiante)
  • MOUABBI, Sarah (Contractuelle Banque de France)

Course validation

Two written assignments during term (25% each), one final exam at the end of term (50%).

Required reading

  • Carlin & Soskice (2014): Macroeconomics: Institutions, Instability, and the Financial System. Oxford University Press
  • Hubbard, R. Glenn, and Anthony Patrick O'Brien, “Money, Banking, and the Financial System”, 1st Ed., 2012
  • Gali, J., (2008), “Monetary Policy, Inflation, and the Business Cycle: An Introduction to the New Keynesian Framework”, Princeton University Press
  • Walsh, C.E. (2010), Monetary Theory and Policy, 3rd Edition, MIT Press
  • Additional reading will be supplied through-out the term.